Spotting A Great Broker

When I decided to start looking for a house, I knew that I needed a professional who truly understood the local market. I didn't want someone who might suggest parts of town that I wasn't comfortable with, or who would pressure me into paying too much. To make my search a little easier, I started looking around for a great broker. I was able to find an incredible professional in my area who knew how to negotiate great deals and avoid complications. He was amazing to work with, and it made the experience so much easier. This website is here to help people to know what to look for in a real estate agent or broker.

3 Things You Need To Do Before Buying A Home

Posted on:
4 January 2016

Buying a home can be very exciting and stressful. Many people look forward to becoming homeowners but don't always look forward to the process of getting the mortgage. If you are not properly prepared, getting a mortgage can be a daunting experience, which is why it is important to prepare yourself and know exactly what is going to be required of you. Here are some things you should know.

1. Protect Your Credit Report

In the months leading up to applying for your mortgage, you should do everything you can to protect your credit report. Your credit score will help to determine the kind of interest rate you get on the house. The better the score, the better your interest rate, and thus the more money you save. In order to protect your score, you shouldn't open any new lines of credit right before you apply for the home loan. When you open a credit line, like a credit card, a car loan, or even a student loan, it will ding your score. Luckily, it is not a permanent ding, but it will definitely hurt your score in the short run which means that your score will reflect it when you apply for the loan.

2. Pay Off As Much Debt As Possible

If you know you are going to be applying for a home loan in the near future, start paying off debts. When the mortgage company determines how much they will loan you in a home loan, they will use a debt to income ratio. This means that they will compare how much money you make to how many debts you have. The bigger your debts, the less you will qualify for in a home. This means that each debt amount you can reduce, the more likely you are to get a better loan and get into the home you want.

3. Be Careful On Tax Deductions

When the lender looks at your annual income, they will use W-2s and your tax returns. When using the tax return, they will not include your net income, but your adjusted gross income (AGI). This means that every deduction that you take will reduce your AGI and look like you don't make as much money. This is especially dangerous for someone who is self-employed and who can deduct a good deal of their expenses. If you know you are going to buy a house in the future, talk to a tax consultant about the best way to reflect your true income on your taxes.

By doing these things you can be prepared to apply for a home loan.

For more information and tips, talk with real estate agents and brokers, such as those at RE/MAX EXECUTIVES PLUS.